Assuming That Ideko Has a EBITDA Multiple of 9

question 38

Multiple Choice

Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:

• A)$181.7 million
• B)$152.8 million
• C)$272.8 million
• D)$301.7 million

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Profits

The financial gain obtained when the revenue from business activities exceeds expenses, costs, and taxes.

Retained Earnings

The portion of net income that is kept within a company rather than distributed to shareholders as dividends.

Stock Market

A marketplace where securities such as stocks and bonds are bought and sold, providing companies with access to capital and investors with a slice of ownership in companies and potential income.